Supreme Court wants to know if question is live - Deep Disappointment with Revenue
AT the very outset the Supreme Court puts on record its deep disappointment with the Revenue and all concerned officers dealing with these matters with regard to the manner in which assistance has been offered to the Court. This is brought to the notice of the Chairman of the Central Board of Direct Taxes so that prompt remedial measures, as may be required, in connection with the huge number of tax appeals pending in the Court are taken.
There is an SLP in the Supreme Court filed in 2009. The question of Law is the availability of the revisional power under Section 263 of the Income Tax Act, 1961, in respect of the orders passed by the inspecting Assistant Commissioner of Taxes. This question has to be answered in context of the provisions of Sections 125 and 263 of the Act, as amended in 1984 and 1988.
Assessee pleads that the question has become academic as the tax liability of the assessee had been decided in favour of the assessee in the earlier assessment years as also in the subsequent assessment years. Even if the Supreme Court is to decide the question of law in favour of the Revenue, the effective relief so far as Revenue is concerned would be nil.
Department vehemently urges and requests the Court that the question of law may be decided inasmuch as it may still be a live issue in other cases. Therefore, the issue ought not to be left open.
The Supreme Court on 1.3.2016 ordered that these cases will be decided on merits by answering the question of law only after the Revenue satisfies the Court that the question posed is a live issue in other adjudications. -
While the Supreme Court passed this order on 1st March, the CBDT immediately reacted and on 4th March asked the field for information.
Board wants the information on pending cases on this issue latest by 10.3.2016, to submit the same to the Court on 17.3.2016.
In case no information is received from any Principal Chief Commissioner, it will be assumed that no litigation is pending in his charge on this issue and the Apex Court will be informed accordingly.